A business loan is very beneficial for a small business owner as it provides him additional funds promptly. The funds availed can be used for various purposes, ranging from purchasing inventory and investing in marketing to increasing working capital and expanding the business. Seeing its benefits, a business owner can also apply for a business loan second time after availing the services one time.
If you opt for a business loan for the second time, you can avail it from the same lender you availed the loan from the first time. Or you can also search for a new lender. The important decision that you need to make here is that whether you want to avail a secured loan or an unsecured business loan.
So, if you have availed a business loan without security in the past, you would know that there is no need to offer security to get the loan sanctioned. So, according to your requirements, you can choose one and search for new lenders in the market. If you have previously availed the credit services from a bank, you are suggested to avail a loan for business from an NBFC.
An NBFC offers business loans at basic eligibility criteria and minimal documentation. Additionally, they have an online loan application process where the applicant can submit the application form online. Also, the applications are processed, approved/disapproved, and the loan amount is disbursed within a few days. So, it can be concluded that availing an NBFC business loan can be beneficial for the business owners.
Now let’s take a look at how to apply for a business loan second time.
As discussed above, firstly decide if you want to avail the credit service from the previous lender or new. Availing loan of the prior lender would be less time-consuming in terms that he would already have your KYC documents. However, you will have to submit updated financial documents, such as ITR and bank statement. Searching for a new lender may also help you get loans at a lower interest rate than before. Also, if you choose to avail a loan from an NBFC, the loan application is processed faster.
Check Business Loan Eligibility
Even if you apply for the loan with the same lender, he would again verify your loan eligibility. It is because of the change in the business financials over time. And this goes without saying that the new lender would determine your eligibility before granting you the loan. You can also check eligibility yourself within 10 seconds by visiting the website of the lender. You just have to fill a simple eligibility form. And you will know if you are eligible for the loan or not.
Loan Application & Documentation
Once you check your eligibility, you can apply for a business loan second time by filling the loan application online. For this, you need to fill your personal and business details in the loan application. Next, you have to upload the required documents; you are suggested to upload the documents in PDF format as it will help the lender to process the application faster.
Here, you also need to talk to the lender about his terms and conditions and see if you can fulfill them. You need to ensure that you can afford the agreed EMI amount and repay the loan amount in the decided loan repayment tenure.
Loan Approval & Disbursement
Next, the lender will process your application. He will verify all the information and documents provided by you and see if you meet their requirement. If your application is approved, the loan amount will be disbursed within a few days. However, before that, a representative from the lender will come to you with the agreement and disbursal kit. You need to sign the agreement. You are suggested to read the contract carefully before signing it.
Now that you know how to apply for a business loan second time, you can avail the credit services in a hassle-free manner.